Consider the cash flow: Year Cash Flow o -$100 1 +50 2 +60 3 +70 4 +80
Question:
Consider the cash flow:
Year Cash Flow
o -$100
1 +50
2 +60
3 +70
4 +80
5 +140
Which one of the following is correct for this cash flow?
(a) 100 = 50 + 10(A/G, i, 5) + 50(P/F.i,5)
(b) 50(P/A, i, 5) + 10(P/G, i, 5) + 50(P/F, i, 5)/100 = 1
(c) 100(Aj P, i, 5) = 50 + 10 (Aj G, i, 5)
(d) None of the equations are correct.
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